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Economy Still at Top of Fund Raisers’ Worries, Survey Finds

April 12, 2010, 2:08 pm

Baltimore

Fifty-seven percent of charities raised less money last year than in 2008—or had flat returns—according to a study released today by the Association of Fundraising Professionals at its annual meeting here.

Forty-three percent of charities said they had raised more in 2009 than in 2008, the smallest share in the history of the nine-year survey, which drew responses from 345 American fund raisers and 350 Canadian fund raisers.

In 2008, 46 percent raised more money than in 2007, another record low. In a typical year, 60 percent of respondents report raising more money in the previous year.

Among fund raisers who raised more money last year, 68 percent said contributions rose by 20 percent or less. Before the recession started, in the 2006 survey, almost a quarter of fund raisers said contributions had grown by 50 percent or more in the previous year.

In 2009, fewer fund raisers reported gains in nearly every type of donation their organizations received. Only 33 percent of fund raisers, for example, reported that they raised more from special events last year, down from 74 percent before the recession.

To cope with tough times, 29 percent of development officials said they set lower fund-raising goals in 2009.

That may be why 53 percent of fund raisers in the survey reported achieving their fund-raising projections, said Paulette Maehara, president of the Association of Fundraising Professionals in a press conference.

“It is likely that charities set lower goals; they expected the worse and budgeted accordingly,” she said.

Looking ahead, fund raisers said that the top challenges facing them in 2010 are the economy (80.3 percent), attracting new donors (46.4 percent), declining corporate support and sponsorships (35.9 percent), and a falloff in foundation grants (30.4 percent).

Nevertheless, Ms. Maehara noted, fund raisers are still optimistic about their prospects for this year, with more than 60 percent expecting a rise in contributions. While fund raisers are unfailingly optimistic, she noted, there are signs that the fund-raising environment is improving.

For example, she said, job openings for fund raisers listed by the association have now reached pre-recession levels of November 2007, with the number of positions rising every month since January.

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One Response to Economy Still at Top of Fund Raisers’ Worries, Survey Finds

help501c3 - April 14, 2010 at 6:05 am

As professional fundraiser, I think it is best to not dwell on the poor economy. We need to stay encouraged, seeking new reasons for people to give, and not excuses for why they can’t support the organization.Kevin Feldman